Agenda

The TPH 2011 Operating Budget request totals $231,844.0 thousand gross / $44,328.5 thousand net. This request is $6,515.6 thousand gross and $160.9 thousand net (0.4 percent) above the 2010 Operating Budget. The requested increase is for base changes, with the exception of $100.0 thousand gross and $0.0 net, and one new position for the Investing in Families program.

See Table 1 in the staff report for further financial impact information.

TPH has reviewed its services and costs and where achievable absorbed expected inflation increases and reduced costs in the 2011 budget request.   TPH has reviewed the 2011 Request with the City Manager and the Chief Financial Officer.  Corporate Financial Planning is recommending the TPH 2011 Operating Budget Request except for the planned reduction in corporate overhead charges of $650 thousand gross /$162.5 thousand net. Due to the City's current fiscal position, the City's Financial Planning Division is not recommending this reduction. The provincial funding from this charge benefits the City by offsetting costs for other City programs.

The corporate overhead charge from the City is for general municipal services provided to TPH.  This is a third annual planned reduction based on a review of this cost allocation by the City's Internal Audit Division.  The revised corporate charge was reviewed and validated by Corporate Accounting and the City's Internal Auditor in 2008 and a schedule was initiated in the 2009 operating budget cycle to allocate the full reduction required over five years. There is no impact on public health service to the community from this reduction although the savings could be reallocated to delivering services.

The Medical Officer of Health recommends that:

1.         City Council approve a 2011 Capital Budget Request for Toronto Public Health with a total project cost of $3.375 million and a 2011 cash flow of $5.791 million and future year commitments of $9.625 million as detailed in Appendix 1, Table 2 “Toronto Public Health 2011-2020 Capital Budget and Plan Submission”. The 2011 Capital Budget is comprised of the following:

a.          new cash flow funding for:

i.          one new sub-project and seven change in scope sub-projects with a 2011 total project cost of $3.375 million that requires a reduction in cash flow of $0.305 million in 2011 and future year commitments of $0.405 million in 2012; $0.640 million in 2013; $1.353 million in 2014; and, $1.282 million in 2015; and

ii.          seven previously approved sub-projects with a 2011 cash flow of $3.843 million and future year commitments of $3.933 million in 2012 and $2.012 million in 2013; and

b.         2010 approved cash flow for six previously approved sub-projects with carry forward funding from 2010 into 2011 totaling $2.253 million.

2.         City Council approve the 2012-2020 Capital Plan for Toronto Public Health totaling $21.814 million in project estimates, comprised of $0.744 million in 2013, $2.040 million in 2014,  $2.114 million in 2015, $3.392 million in 2016, $3.388 million in 2017,  $3.363 million in 2018, $3.373 million in 2019, and $3.400 million in 2020.

3.         City Council direct that the net operating impacts in the Toronto Public Health operating budget of $0.027 million for 2012, and $0.028 million in 2013, arising from the approval of the 2011 Capital Budget, be considered within the 2012 and future year operating budgets.

4.         The Board of Health forward this report including the attachment to the City's Budget Committee for its consideration during the 2011 budget process.

This report provides an overview of the Toronto Public Health (TPH) 2011 Capital Budget and 2012-2020 Capital Plan for consideration and approval by the Board of Health.

TPH is submitting a 2011 – 2020 Capital Budget and Plan request of $34.978 million, including a 2011 Capital Budget of $3.539 million, future year commitments of $9.625 million and a 2012 – 2020 Capital Plan of $21.814 million. The Debt Affordability Target provided by the City for TPH is $4.507 million in 2011, $3.400 million in 2012 and $3.400 million in each year from 2013 to 2020 for a total of $35.107 million.

The 10-Year Capital Budget and Plan request will provide funding for fourteen Information Technology (IT) projects that support improvement of service delivery with the development and enhancement of systems while complying with provincial mandatory reporting requirements. The associated operating impact of these fourteen IT projects at the end of ten years is $0.222 million gross/$0.055 million net expenditure that includes two new positions and ongoing costs for service and maintenance.

TPH is submitting a 2011 Capital Budget and 2012 - 2020 Capital Plan request of $34.978 million, including 2011 cash flow of $3.539 million (excluding the carry forward funding from 2010) which is entirely financed from debt. The approved annual Debt Affordability Target for TPH is $4.507 million in 2011, $3.400 million in 2012, and $3.400 million in each year from 2013 to 2020. The total requested amount for the 2011 Capital Budget and 9-Year Capital Plan (2012-2020) meets the Debt Affordability Target of $35.107 million as shown in Table 1 below. The 2011-2020 Capital Budget and Plan is $0.129 million under the Debt Affordability Target due to HST savings. The associated operating impact of these capital projects on the TPH Operating Budget at the end of ten years will be $0.222 million gross and $0.055 million net that includes two new positions and ongoing costs for service and maintenance.

A shift in cash flow funding from 2011 to 2012 was done with the City's Financial Planning Division.  The TPH debt target will be revised in 2012 from $3.400 million to $4.338 million to reflect the shift in funding.

See Table 1 in the staff report for further financial impact information.

The Deputy City Manager and Chief Financial Officer has reviewed this report and agrees with the financial impact information.

To extend municipal funding to 30 provincially designated school communities that currently receive provincial funding but not municipal funding and to meet the increased cost of food for existing programs in Toronto, an additional $296,921 is required for 2011.

This enhancement is less than outlined for year two in the original Student Nutrition Program five-year plan endorsed by the Board of Health in June 2009. This difference is solely due to a lower rate of food inflation (0.6%) than originally projected (3%) based on long-term averages.

This recommended service enhancement of $296,921 will bring the student nutrition program base budget of $3,796,576 within the Community Partnership and Investment Program (CPIP) to $4,093,597 and is subject to the 2011 Operating Budget process.

The Deputy City Manager and Chief Financial Officer has reviewed this report and concurs with the financial impact information.

Funds are allocated to programs by the Toronto Partners for Student Nutrition (TPSN) Steering Committee.  Standardized meal costs per student are used to estimate program costs.